Posted June 04, 2018 07:09:49 The price of natural-gas is expected to fall this year to around $US1.70 a million British thermal units, according to a new report from the Australian Taxation Office (ATO).
The decline was forecast by the agency’s director general, Peter Costello, and came as the Australian government slashed its greenhouse gas emissions target to 30 per cent below 1990 levels by 2020.
The new report, from the Tax Office’s Climate Change and Energy department, was released on Monday.
The government has also announced a reduction in its 2020 greenhouse gas emission target to 35 per cent, and that 2020 emissions target will be reduced to 35 by 2030.
Australia has the world’s third-largest natural gas reserves after China and Russia, and its share of global supply has been growing steadily.
The Australian Energy Market Operator (AEMO) expects to see a net increase in natural gas supply from the end of 2018 to 2021, and a net reduction in demand from 2021 to 2030.
The AEMO’s forecast for natural gas demand is in line with the latest government forecasts.
But there is some good news for those who want to build new gas plants.
“We’re expecting that by 2021, the AEMOs [Australian Energy Market Operators] forecasts are for gas supply to grow by about 50 per cent from the current level,” AEMo chief executive David Evans said.
“The reason that we’re not seeing that growth is because the prices are so low that we have not had that opportunity to ramp up supply to meet demand.”
Mr Evans said there was no reason why the market would be able to sustain a large increase in gas supply and demand.
“If we’re going to keep gas at that level and demand remains high, we’re likely to need to ramp it up,” he said.
What is a gas plant?
A gas plant is a well-constructed structure that extracts gas from the gas field.
The cost depends on the size and complexity of the project, the type of gas and its location.
It can include gas storage, liquefied natural gas (LNG), or a mixture of both.
Gas is typically produced from underground rock, or underground rock and shale, and the gas is then piped to a liquefaction plant.
LNG is typically sourced from offshore.
It is typically stored at sea, where the gas can be pumped to nearby basins and ships to the gasfield.
The gas is transported from a site to a facility.
Gas can also be produced in situ by pumping water underground.
Lignite can be used to produce cement, cementitious materials, and cement pellets.
LPG is used to convert natural gas into natural gas and can be generated from shale gas.
Natural gas is also produced in a variety of other ways, including as a by-product of mining and by the burning of natural resources such as coal.